Tilray to supply to Novartis
Earlier on December 18, Tilray (TLRY) announced a supply deal with Novartis—one of the largest global drug makers. Tilray stock rose nearly 11% following the announcement. Novartis stock was trading ~1.3% lower on in the European market.
About the deal
The deal would entail a joint effort between Tilray and Sandoz, the generic drug arm of Novartis, to develop cannabis-based medical products. The agreement could also lead to co-branded products between Tilray and Sandoz where medical cannabis is legal.
Tilray’s CEO, Brendan Kennedy, was clear about the medical industry. He stated that cannabis is a hedge to the mainstream medical industry. The latest development shows how the medical industry is moving towards the cannabis industry, which might be positive for investors including Canopy Growth (WEED), Aurora Cannabis (ACB), and HEXO (HEXO).
The latest development provides cannabis investors (HMMJ) with validation about the future of cannabis use. Serious investors, like Novartis, are taking part in the cannabis sector. Validation and serious investors are two of the top ten developments that we’ll be watching in 2019. To learn about the eight other developments, read Top Ten Developments to Watch in the Cannabis Sector in 2019.